Wings Air Charter LLC Fractional Ownership

What types of ongoing costs are associated with the program? There are two primary types of costs with aircraft ownership, fixed and variable costs. Fixed costs are costs that do not change with the amount that the aircraft is flown. Fixed costs include hangaring, insurance, GPS data updates, navigational charts, aircraft cleaning, and management fees. Variable costs are based on the actual cost of operation of the aircraft. Variable costs include fuel, maintenance, parts, and maintenance reserves.

Why is there a monthly fee? The monthly fee covers the fixed costs of ownership of the aircraft. As a fractional owner, you only pay a fraction of the fixed cost rather than footing the whole bill.

Why do I have to pay an hourly fee if I "own" part of the aircraft? An hourly fee is set to cover aircraft, engine, prop, and maintenance expenses. The fee is put into a fund so that when expenses occur, there is money in the fund to cover those expenses. The hourly fee is based on over 15 years experience of flying and maintaining a similar model aircraft and what it costs to do so. An additional benefit to charging an hourly fee is that it is more fair to the owners. The more frequent user will pay more toward the expenses that the less frequent user.

Who gets the hourly fee? The hourly fee goes into a maintenance savings account until it is needed. The accounts are owned by the LLC. If an owner sells their share, the money stays with the LLC. If the LLC is dissolved, the money is split based on percentage of ownership.

What if fuel prices change? Owners are charged for direct fuel costs. As fuel prices change operational costs change accordingly. The owner is billed for the fuel consumed on their flight. The management company will always try to buy fuel at the most economical location on the flight.

Do I have to buy in again each year? No. Your acquisition cost is a one time investment. You are buying a share of The Company Plane LLC which is the owner of the aircraft.

What are my costs if I don't use the aircraft? The fixed cost for the aircraft is $150 per month. If you don't use the aircraft that is your total expense. In the unusual instance where there is a maintenance expense that the maintenance fund doesn't cover, you would be liable for 1/8 of that expense. Otherwise, for $1800.00 per year you have access to your own private aircraft and all of the benefits that go with it for the actual operational costs of the aircraft.

Do I have to pay for a pilot I am when I am not using one? No. You only pay for a pilot when you are using one. A pilot is paid hourly for flight time and wait time. There is a minimum charge of $250 per day and a maximum charge of $500 per day. All taxes, unemployment, and workers comp costs are collected by the management company.

Who handles the day to day operation of the aircraft? The aircraft is managed by Wings Air Charter LLC (WAC). WAC is a sole member LLC with Kurt Gross being the sole member. Kurt has been flying for over 30 years and has over 10,000 hours of flight time. He holds an Airline Transport Pilot rating, a Flight Instructor rating, and is a FAA Designated Pilot Examiner. He has operated a Cessna 310R, the same model owned by the LLC, for almost 20 years. He has flown as a Corporate Pilot and Charter Pilot flying over 30 different models of aircraft. WAC will schedule the flights, maintenance, and pilots. WAC is also available for concierge services to schedule ground transportation, on-board catering, and hotel reservations.

How does billing work? Each owner is billed monthly. The monthly fixed cost of $150.00 plus a bill for flights during the month will be sent out each month. The bill for a flight will include aircraft flight time, fuel, pilot services, catering costs, pilot expenses, and any other expenses accrued on the flight.

What if I want to get out of the program? You may sell your share of the LLC to another party. If you sell the share on your own, you receive 100% of the price that you sell it for. If the management company sells your share for you, they receive a 10% sales commission.

What if there is a scheduling conflict? As in any shared ownership program, there is the possibility of a scheduling conflict. Scheduling priority is rotated from owner to owner each month. After owners choose their days, the rest of the month is first come-first served. If the aircraft is not available and your travel dates are not flexible, the management company will try to set up a charter flight for you.

What if I will need the aircraft more than the 50 hours I am allowed each year? Each 1/8 share owner is allowed 50 hours (about 10,000 miles) of use per year. If you think that you will need several more hours of use per year, consider buying in at 1/4 share and 100 hours per year. If you think you may need more than 50 hours on occasion, you may negotiate hours from other owners who will not be using their annual allotment.

Where can I travel with this aircraft? You can travel to any of the U.S. airports that the airlines serve and about 6,000 that they don't. You will often fly into smaller airports that are much closer to your actual final destination that you would be if you could only fly to the "airlines" airports. You can also fly to Canada and Mexico.

How can this cost 30% to 40% less than charter when you are using the same kind of aircraft? There are several reasons that the cost is less. Insurance is much less for an owner than for a charter company. There is also no mark-up in aircraft cost that the charter company must charge to get a return on their investment. As a fractional owner, you are only paying the actual operational and fixed costs of the aircraft.